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Bond Funds

While bond funds have some of the same positive characteristics of other mutual funds:  spreading risk through diversification, professional management, etc., bond funds generally do not offer the key benefits that are characteristic of individual bonds.

Most investors are attracted to bonds for two reasons:  Preservation of capital if held to redemption, and to lock in a known, steady stream of income.  Bond funds do neither!  Bond funds are shares of an entity that go on into perpetuity trading, leveraging, etc. a bunch of securities, many of which are bonds, but, there is no end date when you get back your principal, nor is there a guaranteed stream of income.  Keep in mind that any guarantees are subject to the paying ability of the issuer.  As a bond fund owner, you are simply a shareholder of this entity, and its dividends may be changed at any time in response to market conditions.

Click for Bond Funds PDF

If your portfolio is greater than $500,000, Sharon Alister can provide a free analytic review to help ensure that your portfolio is in line with your investment goals. Call Sharon Alister at (800) 745-7110 or email info@AlisterTalksBonds.com

 

04/27/2018 Today’s Rates (Indications only)

Please note the rates for Ins’d and Pre-Res are not available from Bloomberg and will be updated as soon as possible.

Treasuries AAA Munis
3mo 1.815 N/A
6mo 2.009 N/A
1yr 2.237 1.74
2yr 2.482 1.87
5yr 2.809 2.19
10yr 2.970 2.53
30yr 3.145 3.14

 

today's rates chart

AAA Rated Munis

Pre-Res Ins’d Pure*
2 yr 1.91 2.05 1.87
5 yr 2.23 2.49 2.19
10 yr N/A 2.89 2.53
15 yr N/A 3.20 2.82
30 yr N/A 3.50 3.14

*Rated AAA on its own
Source: Bloomberg

Bond Funds

While bond funds have some of the same positive characteristics of other mutual funds:  spreading risk through diversification, professional management, etc., bond funds generally do not offer the key benefits that are characteristic of individual bonds.

Most investors are attracted to bonds for two reasons:  Preservation of capital if held to redemption, and to lock in a known, steady stream of income.  Bond funds do neither!  Bond funds are shares of an entity that go on into perpetuity trading, leveraging, etc. a bunch of securities, many of which are bonds, but, there is no end date when you get back your principal, nor is there a guaranteed stream of income.  Keep in mind that any guarantees are subject to the paying ability of the issuer.  As a bond fund owner, you are simply a shareholder of this entity, and its dividends may be changed at any time in response to market conditions.

Click for Bond Funds PDF

If your portfolio is greater than $500,000, Sharon Alister can provide a free analytic review to help ensure that your portfolio is in line with your investment goals. Call Sharon Alister at (800) 745-7110 or email info@AlisterTalksBonds.com

 

04/27/2018 Today’s Rates (Indications only)

Please note the rates for Ins’d and Pre-Res are not available from Bloomberg and will be updated as soon as possible.

Treasuries AAA Munis
3mo 1.815 N/A
6mo 2.009 N/A
1yr 2.237 1.74
2yr 2.482 1.87
5yr 2.809 2.19
10yr 2.970 2.53
30yr 3.145 3.14

 

today's rates chart

AAA Rated Munis

Pre-Res Ins’d Pure*
2 yr 1.91 2.05 1.87
5 yr 2.23 2.49 2.19
10 yr N/A 2.89 2.53
15 yr N/A 3.20 2.82
30 yr N/A 3.50 3.14

*Rated AAA on its own
Source: Bloomberg

Investing involves risk, including possible loss of principal. When investing in bonds, it is important to note that as interest rates rise, bond prices will fall. Adversely, as interest rates fall, bond prices will rise.

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